Jagran Prakashan’s Q1-20 sales Rs 191.09 crore – down 67.3%

Q on Q raw material (largely newsprint) consumption down 66%

Of the print news media in India, Dainik Jagran in Hindii is one of the highest circulated daily newspapers

Jagran Prakashan’s consolidated Q1 2020 (April, May, June) numbers are down 67.3% from the Q1 of 2019 figures of Rs 584.28 crore. The quarterly net loss at Rs. 39.57 crore in June 2020 is down 161.47% from Rs. 64.36 crore in June 2019. The EBITDA stands negative at Rs. 20.82 crore in June 2020, down 114.35% from Rs. 145.10 crore in June 2019.

Jagran Prakashan is the publisher of the leading Hindi daily Dainik Jagran from more than 45 centers across India and several other dailies and other publications. It is also the owner of several other allied media and communication businesses.

Jagran Prakashan’s standalone figures for Q1 2020 show net sales at Rs 174.46 crore, down 64.31% from Q1 of 2019 in which net sales were Rs. 488.78 crore. The standalone quarterly net loss is Rs. 19.27 crore in Q1 2020, down 132.42% from Rs 59.45 crore in the June Q1 quarter of 2019. The EBITDA is negative or -Rs. 2.31 crore for the June 2020 quarter, down 102% from the profitable Q1 2019, which reported a positive Rs. 59.45 crore.

Jagran Prakashan shares closed at 38.35 on July 31, 2020 (NSE), and have given -43.81% returns over the last six months and -54.32% over 12 months. Interestingly, for newsprint consumption watchers, is the reported consumption of raw materials at Rs. 59.72 crore in comparison to the consumption in Q1 2019, which was reported as Rs. 175.64 crores. This represents a decrease in raw material consumption (which we presume is largely newsprint but would also likely include offset plates and ink) of 65.99%.

2023 promises an interesting ride for print in India

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. While the print and packaging industries have been resilient in the past 33 months since the pandemic lockdown of 25 March 2020, the commercial printing and newspaper industries have yet to recover their pre-Covid trajectory.

The fragmented commercial printing industry faces substantial challenges as does the newspaper industry. While digital short-run printing and the signage industry seem to be recovering a bit faster, ultimately their growth will also be moderated by the progress of the overall economy. On the other hand book printing exports are doing well but they too face several supply-chain and logistics challenges.

The price of publication papers including newsprint has been high in the past year while availability is diminished by several mills shutting down their publication paper and newsprint machines in the past four years. Indian paper mills are also exporting many types of paper and have raised prices for Indian printers. To some extent, this has helped in the recovery of the digital printing industry with its on-demand short-run and low-wastage paradigm.

Ultimately digital print and other digital channels will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future. For instance, there is no alternative to a rise in textbook consumption but this segment will only reach normality in the next financial year beginning on 1 April 2023.

Thus while the new normal is a moving target and many commercial printers look to diversification, we believe that our target audiences may shift and change. Like them, we will also have to adapt with agility to keep up with their business and technical information needs.

Our 2023 media kit is ready, and it is the right time to take stock and reconnect with your potential markets and customers. Print is the glue for the growth of liberal education, new industry, and an emerging economy. We seek your participation in what promises to be an interesting ride.

– Naresh Khanna

Subscribe Now


Please enter your comment!
Please enter your name here